MQM 385 Actual Questions and Correct Answers
Q1
Which of the following could be a definition of strategic competitiveness?
Answer: a. The ability of a firm to outperform its rivals by forming and executing a
strategy that creates value for its stakeholders
Q2
The strategic management process is the:
Answer: The way that businesses formulate initiatives that will create superior value
for customers and then implement them to out perform competitors
Q3
Which of these describes a company that has delivered above-average returns to its investors?
Answer: A tool manufacturer that announced it will increase its dividend payment-the
highest dividend amongst all of its industry competitors for the upcoming
Q4
Hypercompetition describes a competitive landscape where:
Answer: b. the industry is constantly changing with global competition and innovative
competitors.
Q5
Michael is the CEO of a manufacturer with plants in three countries. He currently has a product
line that is manufactured only in the company's U.S. plant. That product has experienced a
steady increase in its export sales to Europe over the last three years. The international sales
director is recommending that the company expand manufacturing capabilities at the European
plant to include this product line. Michael and his management team must consider whether to
pursue this strategy. This is:
Answer: d. a decision that would benefit from using the entire strategic management
process
,Q6
Which of these is an example of a disruptive technology?
Answer: b. The introduction of Global Positioning System (GPS) technology, which is
used in standalone and hand-held navigation tools, smartphone apps, and in-car
navigation systems
Q7
Companies must be aware of technological advances within their industry and make strategic
management decisions that take into account perpetual innovation and disruptive technologies.
Which of these is an example of a company that did not respond strategically to technological
changes?
Answer: c. Kodak revolutionized the automatic snapshot camera more than 100 years
ago, making photography accessible to everyone. When innovators brought digital
cameras to the marketplace, Kodak focused on making it easy for people to print their
photos using this technology
Q8
The industrial organization (I/O) model of above-average returns:
Answer: a. puts emphasis on the external environment, which plays a role in
determining a company's ability to achieve above-average returns.
Q9
Which of these represents a criticism of the industrial organization (I/O) model of
above-average returns?
Answer: b. The model assumes that most firms operating in an industry have similar
valuable resources that are mobile across companies, which is not necessarily true.
Q10
A multi-divisional corporation that manufactures large steel tanks is considering starting a new
business unit to serve the transportation industry. The company is utilizing the I/O model to
develop its strategy. Which of these decisions is consistent with this model?
Answer: c. The company's research into a new railcar guideline that requires all tanker
cars to be replaced or retrofitted over the next five years leads its leaders to start a
business that manufactures tanker cars to capitalize on the new demand.
, Q11
In the resource-based model of above-average returns, differences in company performance
can be attributed to:
Answer: b. the unique capabilities and resources of the company.
Q12
In the resource-based model of above-average returns, a core competency is
Answer: d. something that gives a company an edge over the competition, something
that the company possesses that its competitors do not have, and something that is
too difficult or costly for competitors to copy or produce an alternative.
Q13
A local community arts nonprofit organization is seeking to expand its programming and is
considering putting just one new program in place this year. It may choose painting workshops,
youth summer camps, a musical performing arts series or classes for seniors. The
organization's most committed volunteer is a kindergarten art teacher who has offered to be
the leader of whichever new program the organization implements. If the nonprofit is utilizing
the resource-based model of above-average returns, it should expand its programming in the
following way:
Answer: b. Youth summer camps because the organization should use the knowledge
of its passionate volunteer to their greatest advantage
Q14
Which of these represents a core competency for Alibaba as presented in the opening case in
the chapter?
Answer: c. The company's diversification of web services tailored to the Chinese
market directly, which has resulted in transactions that account for more than 2
percent of China's GDP.
Q15
A mission statement can describe:
Answer: b. what the company does in terms of its customers and their needs and what
core competencies it utilizes to meet those needs.
Q1
Which of the following could be a definition of strategic competitiveness?
Answer: a. The ability of a firm to outperform its rivals by forming and executing a
strategy that creates value for its stakeholders
Q2
The strategic management process is the:
Answer: The way that businesses formulate initiatives that will create superior value
for customers and then implement them to out perform competitors
Q3
Which of these describes a company that has delivered above-average returns to its investors?
Answer: A tool manufacturer that announced it will increase its dividend payment-the
highest dividend amongst all of its industry competitors for the upcoming
Q4
Hypercompetition describes a competitive landscape where:
Answer: b. the industry is constantly changing with global competition and innovative
competitors.
Q5
Michael is the CEO of a manufacturer with plants in three countries. He currently has a product
line that is manufactured only in the company's U.S. plant. That product has experienced a
steady increase in its export sales to Europe over the last three years. The international sales
director is recommending that the company expand manufacturing capabilities at the European
plant to include this product line. Michael and his management team must consider whether to
pursue this strategy. This is:
Answer: d. a decision that would benefit from using the entire strategic management
process
,Q6
Which of these is an example of a disruptive technology?
Answer: b. The introduction of Global Positioning System (GPS) technology, which is
used in standalone and hand-held navigation tools, smartphone apps, and in-car
navigation systems
Q7
Companies must be aware of technological advances within their industry and make strategic
management decisions that take into account perpetual innovation and disruptive technologies.
Which of these is an example of a company that did not respond strategically to technological
changes?
Answer: c. Kodak revolutionized the automatic snapshot camera more than 100 years
ago, making photography accessible to everyone. When innovators brought digital
cameras to the marketplace, Kodak focused on making it easy for people to print their
photos using this technology
Q8
The industrial organization (I/O) model of above-average returns:
Answer: a. puts emphasis on the external environment, which plays a role in
determining a company's ability to achieve above-average returns.
Q9
Which of these represents a criticism of the industrial organization (I/O) model of
above-average returns?
Answer: b. The model assumes that most firms operating in an industry have similar
valuable resources that are mobile across companies, which is not necessarily true.
Q10
A multi-divisional corporation that manufactures large steel tanks is considering starting a new
business unit to serve the transportation industry. The company is utilizing the I/O model to
develop its strategy. Which of these decisions is consistent with this model?
Answer: c. The company's research into a new railcar guideline that requires all tanker
cars to be replaced or retrofitted over the next five years leads its leaders to start a
business that manufactures tanker cars to capitalize on the new demand.
, Q11
In the resource-based model of above-average returns, differences in company performance
can be attributed to:
Answer: b. the unique capabilities and resources of the company.
Q12
In the resource-based model of above-average returns, a core competency is
Answer: d. something that gives a company an edge over the competition, something
that the company possesses that its competitors do not have, and something that is
too difficult or costly for competitors to copy or produce an alternative.
Q13
A local community arts nonprofit organization is seeking to expand its programming and is
considering putting just one new program in place this year. It may choose painting workshops,
youth summer camps, a musical performing arts series or classes for seniors. The
organization's most committed volunteer is a kindergarten art teacher who has offered to be
the leader of whichever new program the organization implements. If the nonprofit is utilizing
the resource-based model of above-average returns, it should expand its programming in the
following way:
Answer: b. Youth summer camps because the organization should use the knowledge
of its passionate volunteer to their greatest advantage
Q14
Which of these represents a core competency for Alibaba as presented in the opening case in
the chapter?
Answer: c. The company's diversification of web services tailored to the Chinese
market directly, which has resulted in transactions that account for more than 2
percent of China's GDP.
Q15
A mission statement can describe:
Answer: b. what the company does in terms of its customers and their needs and what
core competencies it utilizes to meet those needs.
